A CBD products company just announced a strategic partnership to bring its brands to Kroger’s national chain of grocery stores. That sent the cannabis company’s stock on a nice little run, but it still doesn’t have what it takes to make it into our portfolios. Make sure you know which stock to avoid…

Editor’s Note:Today is the final day of New York’s legislative session for the year, and politicians are in an all-out frenzy attempting to pass legal recreational cannabis. The Institute has been following this situation closely, and we fully believe this will come down to the last minutes of New York’s legislative session – and even that could change. Stay tuned for more updates.

Last week, The Kroger Co. announced its intention to sell hemp-derived CBD products in 945 stores across 17 states.

Given this latest announcement, it seems that the “Year of CBD” continues to march forward with such incredible speed that it’s probably time to start keeping track of which grocery stores aren’t carrying CBD.

And although Kristal Howard, head of corporate communications and media relations for the retailer, did not share which brands Kroger would carry on its shelves, one cannabis company wasted no time in making its own announcement.

That very same day, CV Sciences Inc. (OTC: CVSI) put out a press release to announce the expansion of its PlusCBD Oil brand in a partnership with Kroger.

Unsurprisingly, the markets responded favorably, sending CV Sciences’ stock price up 10% in one day.

But I’m not recommending CV Sciences at this time – and I won’t until the company proves that it’s capable of implementing sweeping changes.

Here’s why CV Sciences should be avoided – and what it really takes to make it into the Institute’s portfolios…

Earning Our Bottom Rating

I’ve spoken at length about the importance of branding, and the ability to spread brands nationwide in these types of partnerships shows significant promise for cannabis companies – and for anyone investing in them.

But there is more to a company than just a brand.

CV Sciences, like nearly every publicly traded cannabis company, has a presence in the NICILytics database.

And as anyone with a Lifetime Membership and access to our analyst report in that database can tell you, CV Sciences has a rating of 1.

Cannabis is expected to grow into a $166 billion market over the next few years. Now is the time to claim your stake. Learn how to get started here.

On our proprietary 0-5 rating scale, 1 is the absolute worst score a company can receive – with 0 being reserved for companies that haven’t disclosed enough meaningful information.

The company has a number of red flags that should present a major concern for any investor, and a single-day 10% jump isn’t enough to overcome them.

The markets know that, too, which is exactly why the stock price has since fallen sharply – right around a 10% drop.

Let’s take a look at what exactly is wrong with CV Sciences.

A History of Allegations and Investigations

For one thing, the company has been plagued with controversy.

In June of 2017, CV Sciences founder and CEO Michael Mona, Jr. was charged with fraud for misleading his shareholders. The company’s settlement with the SEC resulted in a fraud judgment against Mona and his ban from holding a director or officer position with any public company.

Consequently, Mona became a regular employee with the company while his son became president. Somehow, though, the elder Mona still received $7.4 million in 2018, including stock grants.

When he finally retired earlier this year, he received a “parting gift” of another $7.8 million.

While CV Sciences does seem finally to be rid of Mona, the former CEO is far from the only concern we have for the company – or even its only controversy.

As we discuss in depth in our full analyst report, CV Sciences’ financials look promising.

But we’re unsure how much we can rely on them in light of a combination of red flags. Among them are securities fraud investigations by numerous law firms and a previous fraud judgment that directly cost the company $150,000 in penalties.

In short, this company has a long way to go before it should be worthy of any investor’s trust.

Fortunately, CV Sciences isn’t the only cannabis company with skin in the game.

The Right Stuff

One company in particular is currently dominating this scene.

In fact, my staff and I have independently confirmed that its brand has found its way into every major retailer to announce its intention to carry CBD products, including Kroger.

I identified this company as an outstanding play some time ago, which is why it earned the coveted 5 rating and became the very first stock I recommended to Cannabis Investor’s Report members when the Institute launched with the American Cannabis Summit last October.

This company is an excellent long-term play as it continues to spread its outstanding, trustworthy brand across the United States, and it has a place in any cannabis investor’s portfolio.

As the markets begin to regain traction – and as the legal landscape continues to change in the industry’s favor – I will continue to offer our members outstanding picks like this one.

Make sure you know how to get them.

Greg Miller

Executive Director, National Institute for Cannabis Investors

P.S. Right now, we’re entering into the CBD “sweet spot.” In fact, this industry is slated to grow by 3,622% in the next 12-36 months. This translates to potentially mind-blowing profits for CBD investors. As CBD continues to hit the shelves of major retailers nationwide, its revenues could skyrocket as much as $3.3 billion by the end of 2019. The Year of CBD is upon us – and you could see massive profits from it. Learn how to get started here.


Comments

13 responses to “Avoid This Stock at All Costs”

  1. Morning Greg thank you for the information much appreciated. If CV Sciences is such a bad company why is it being used as an example of a good investment in your promotional spill on this page? At either rate I hope you have a great day and much success to all of us in the future!!!!

  2. If you do not recommend CV Sciences then who do you recommend? I seem to have missed your earlier recommendation.

  3. I just called cvsi they said the deal is true I hope I didn’t make a mistake selling my shares this morning. John

  4. As of today my 500 shares of CVSI are up 1367%. I paid $140 for the shares and today those shares are worth $1942.00 more than I paid for them. I wish I would have bought 5000 shares!

  5. Hello Greg how are you? Thank you for the information I have a question since we are in phase 2 of the Cannabis Industry growth and this is supposed to be the best time to be in this. Why hasn’t that reflected in the share prices in both of our portfolio? Much success to all of us in the future!!!!

  6. Kroger is pretty big and I’ve been with cv sciences for a long time. Mainly because I’m an edible manufacturer and pioneer in the space and I’m not buying cv sciences for the directors, but for my ROI and what interested me about this company was that they were the first company to come out with a home kit for testing whether a product had THC or not. As I have spent 25 years in the cannabis industry and have done a lot of R&D and have personally talk to the scientist working at CV sciences and knowing that they import their CBD‘s from Europe which is more pure and refined then USA manufacturing (because of their infancy stages). I have out their knowledge to the test. So it’s about trusting the products and how well they will go to market more than trusting a former management. Everybody believes in MedMen but if you knew the history of the company and the people behind it you would probably think differently but right now people are making a lot of money off of MedMen and it’s mergers and acquisition‘s taking place right now. So even you agree that having a 10% jump in a day may be a spark. But if Kroger is getting behind him and the deal went through well we know how big Kroger is along with all the affiliations and the grocery store chains. Isn’t investing all about taking a risk? But if you know the name brands and marketing is all about the brand then I need more reasons not to trust what I personally have researched and first hand experienced. By the way, this is also an excellent opportunity for CV sciences to put those test kits in stores everywhere so parents will be able to distinguish whether their child’s candy has cannabis in it. I have also bought stock in a second company and one of the first trading companies who also carry CBD‘s from Europe. Would this second company that you might be mentioning be MJNA? (Marijuana inc)

  7. CVSI has 100 times the potential of Emerald Health Therapeutics or Supreme Cannabis who are both respectively crushing shareholders hopes with their lack of execution. CBD in America is the future, not 3rd tier Canadian LP’s who are losing miserably. In less than 2 years, over 80% of Canadian LP’s will be bankrupt

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